Montreal Drivers to Face Hefty Vehicle Tax Increase for Public Transit
Drivers in the Montreal area are looking at a significant jump in their vehicle registration fees. Local mayors have voted to more than double the tax, increasing it from $59 to $150 annually.
This decision comes in response to a funding shortfall for public transit. Municipal leaders say they were forced to take this action due to the Quebec government’s unwillingness to provide adequate financial support.
The increased tax revenue will be dedicated to bolstering public transportation services.
Car owners in the Greater Montreal area will soon see their annual vehicle registration tax more than double. The increase is a direct result of a vote by the Communauté métropolitaine de Montréal (CMM), which represents over 80 municipalities in the region. This move aims to address critical funding gaps in the public transit system.
“I think that today we’re faced with a choice which is very difficult, which no one wants to make, but which is necessary if we want to maintain public transport,” said Laval Mayor Stéphane Boyer.
Montreal-area municipalities have been grappling with the provincial government regarding public transit finances for several years. Transit agencies have yet to recover from a substantial drop in ridership experienced during the pandemic.
The municipalities contend that, coupled with inflation and the diversion of funds to the new Réseau express métropolitain (REM) light-rail network, these factors have created a challenging financial situation for transit operations.
Montreal-area mayors are seeking $421 million to cover transit agency deficits, while Transport Minister Geneviève Guilbault has offered $200 million.
The municipalities requested an additional $421 million to address the deficit of the Autorité régionale de transport métropolitain (ARTM), the region’s public transit authority. However, the province’s offer falls short at $200 million.
Transport Minister Geneviève Guilbault has stressed the necessity for transit agencies to increase financial accountability and investigate ways to lower expenditures.
“We don’t really have the choice to find new sources of financing, and our options are quite limited,” Boyer remarked.
Even though the tax increase is scheduled for the next year, the CMM has retained some flexibility. Municipalities have indicated they might reconsider or reduce the tax hike if the province provides more funding in the interim.
The CMM insists the increase is not a negotiating tactic. Boyer emphasized the increase was a tough but essential decision.
Laval Mayor Stéphane Boyer said the tax increase was a difficult but necessary choice.
“It’s not a strategy. We’re not here to be in a political war,” Boyer said.
“There are people who depend on public transportation to get to the hospital, to go to work every day,” Boyer said.
Montreal Mayor Valérie Plante acknowledged the difficulty in asking drivers to pay more.
“There’s no one here that gets up in the morning saying, ‘How do we ask taxpayers for more money?'” Plante said, implying the province had left the CMM with few options.
“We’re acting pragmatically. We need to think outside the box,” Plante said.
Not all municipalities supported the tax increase. Some, particularly those south and west of Montreal with limited public transit options, felt the move was unfair to their drivers.
“There are some municipalities that currently have no buses on their territory, so this is why we voted against,” said Mercier, Que., Mayor Lise Michaud.
“We don’t have any public transit and now we’ll have a tax increase for the cars? For us it’s nonsense,” said Vaudreuil-Dorion Mayor Guy Pilon.
Boyer pointed out that municipalities with little to no public transit still benefit from a well-funded public system.
“It’s a collective need and we must maintain it,” Boyer emphasized.
“If the hundreds of thousands of people who board the Metro every day all had a car, we would see hellish congestion,” he stated.
L’alliance TRANSIT, a coalition of environmental and public transit advocacy groups, supported the tax increase.
“The municipal community is doing its part. Minister Guilbault must now do hers,” said Samuel Pagé-Plouffe, co-ordinator of the group.
Pagé-Plouffe urged Guilbault to create a five-year plan with municipalities that would offer stable public transit funding with increases.
Guilbault has indicated her intention to resolve the issue of transit agency deficits before the summer.
